How to use LinkedIn to find investors for your startup
Statistics have shown that a certain number of startup companies are doomed to fail. Usually, the idea behind the product or service is not a problem. Neither are the employees, their motivation, or resourcefulness.
Where startups traditionally fail is their money flow. Each startup firm requires a certain amount of time until the work starts to pay off. Eventually, the bank loans dry up and if new investments don’t show up, your business is bound to fail.
Here are a couple of methods to boost those investment chances by tweaking something that’s at your disposal from day one – your startup LinkedIn game.
Build a brand
A startup is, by definition, not a conglomerate. It’s a small business venture, both in scale and reach. It’s usually associated with a founder – that one person with an idea and a business plan on how to cash in that idea.
This means that the branding, i.e. emerging in your business environment as a unit with a name, values, and inherent business worth, should be done both for your company and yourself as an individual.
Nowadays, when the majority of branding is done online – the best way to apprehend this task is to go through existing channels of social platform communication. To start, go to your personal and company LinkedIn page and make it shine.
Each profile section should be filled out in a way that reflects your brand’s mission, vision, and achievements. Try to stand out from the beginning.
Use professional imagery, a catchy headline, and a detailed summary to attract and retain the interest of potential investors.
Exercise warm introductions
As a startup owner, it may be your primary concern to safeguard the financial liquidity of your company. One straightforward way to do it is to keep in touch with potential investors. And what better use of LinkedIn than that?
Employ your current network to grow it even more. Combine personal and company approaches. Ask for mutual connections for a referral, or even better – write directly to potential investors.
Write a personalized introduction to your contacts, with a desire for connecting and cooperation. Perhaps outsource your LinkedIn Inbox feature and use some software solutions that were designed to overcome certain LinkedIn limitations and inherent problems.
A warm introduction from a trusted source can significantly increase the likelihood of engaging with an investor.
Beforehand, research each investor’s background and interests to tailor your message. Explain to them why your startup is a good fit for their investment portfolio. Highlight common connections or shared interests to build rapport.
Make your mark on LinkedIn
Not all content on LinkedIn is search engine optimization, or some optimistic, uplifting hollow content. Some articles, posts, and industry updates are solid and informational content that finds its way to interested readers.
Your job is to try and produce such content. Be it your startup’s milestones, trends in the industry, or some innovative business insight, you should always strive to create high-quality eye-catching content.
Who knows when your next investor will recognize the value within your project just because they read something useful written or published by you or your company?
As we previously disclosed, it is important to have the right connections before captivating them with quality content. You should at least follow key investors and thought leaders in your industry.
After you follow them, engage with their posts by liking, commenting, and sharing valuable insights. This can help you get noticed and establish a bond with those influential figures in the investment community.
Utilize LinkedIn Ads
To earn an investment, sometimes you need to invest in the first place. A good (and relatively cheap) way to do it is to utilize LinkedIn Ads.
These self-serving adverts are a type of sponsored content that appears directly in the feed of your predefined audience. Given that LinkedIn has recently surpassed one billion users, LinkedIn Ads can be pretty effective.
So, try investing in LinkedIn Ads to promote your startup and target specific audiences, including potential investors.
Craft compelling ad copy and use eye-catching visuals to attract interest from those who might be looking for new investment opportunities.
Over to you
The average lifespan of a startup has so far been about five years. Usually, it’s the money that runs out and businesses start collapsing. Expectancy has been almost horrendous – only one in ten startups grow to become full-blooded businesses.
There are certainly ways to better your chances, and using LinkedIn to seek investors before it’s too late – is one of the most fruitful ones.
We’ve covered a couple of important strategies and methods for achieving this goal. It is now up to you to exploit your talent, search and engage with potential investors, and change your company for the better.
